A well-known analyst pointed out bluntly ten hours ago that the crypto world is currently experiencing liquidity exhaustion. On the surface, it seems like retail money is fleeing, but the real danger is actually buried among the market makers.

It is said that there are 1 to 2 core market makers, and the holes on their balance sheets are almost unmanageable. These institutions have major issues with their own balance sheets, so how can they have the capacity to provide depth to the market?

Once these market makers fall, the chain reaction will be quick: order book depth will suddenly decrease, bid-ask spreads will widen, there will be no one to catch the sell-off, and there will be no volume to support a rally. At that time, don't even mention a bull market; it will be good enough to just stabilize.

This liquidity crisis may be more complicated than it seems.